scandi standard (scst ss)
TRANSCRIPT
1
Scandi Standard (SCST SS)Q3 Presentation – 12 Nov, 2021
Net sales Q3 2021(% change vs LY in parenthesis)
Net sales Q3 2021(% change vs LY in parenthesis)
Net Sales and EBIT margin
Scandi Standard
2
• Net sales MSEK 2 632
- +1% in local currency
• EBIT of MSEK 30 (116)
- Multiple factors driving deterioration
• Improvement programme in process
- Recovery primary objective
- Position business for longer term improvements
• Jonas Tunestål appointed CEO
- Taking office 1H 2022
- No impact on pace of recovery measures
Q3 2021: Significant challenges addressed by improvement program
MSEK Q3 2021 Q3 2020 Change, %
Net sales 2 632 2 621 0%
Operating income (EBIT) 30 116 -74%
Operating margin (EBIT) % 1,1% 4,4% -3,3ppt
Non-comparable items1)-13 -31 -58%
Adj. EBIT1)43 147 -71%
Adj. EBIT margin 1) % 1.6% 5.6% -4.0ppt
Income for the period 4 78 -95%
Earnings per share, SEK 0.04 1.21 -97%
1) Restated non-comparable items, see Q3 2021 report note 6 and 8
3
Significant short-term challenges – strong, resilient track record
Net Sales and EBIT margin
Average Capital Employed and ROCE
• High organic growth and stable margins last 5 years
- 7.1% Net sales CAGR
- Stable EBIT margin of ~4%
- Stable return on capital employed ~10%
• Key challenges impacting short/medium term performance
- Lead times in passing through cost inflation to customers
- Low price realisation in the export market
- Major losses in Ready-to-cook Denmark
- Deviations in production and quality processes
1) Pro forma including Manor Farm
2) Recalculated for IFRS16
4
Considerable short-term exposure to inflation – well positioned for price compensation
• Major cost increases driven by inflationary environment
- Feed prices +16%, representing 23% of RTC cost base
- Significant increase in other input factors
• Further cost increases into Q4 2021 largely uncovered
- Further earnings deterioration expected
• Overriding priority to obtain required price increases
- Certain price increases already agreed with effect from Q1 2022
- Confident in gradual absorption of known cost increases during 2022
• Poultry products well positioned in inflationary environment
- Shorter production cycle
- Significantly lower price point compared to protein peers
Parameters Poultry Pork Beef
Fillet price point (SEK/Kg)3) 166 260 587
Edible meat per 100Kg feed (Kg)2) 39 18 7
Production cycle (months)1) 1.4 6.5 14
1) Foodprint2) Fry et al (2018)3) Genomsnittligt konsumentpris Svenskt ursprung Mathem.se Nov 2021
Cost element Q4 index vs avg
2020
Feed price 116
Packaging 125
Energy 320
5
Low price realisation in export markets – continued need to reduce excess volume
• While Scandi Standard is predominantly producing for the domestic markets, there is also a dependency on the export markets
- Export represents 7% of total RTC Sales
• Low price realization in last two years, down by 15%
- Global oversupply due to Covid-19
- Specific export restrictions due to prevalence of bird flu
• Estimated loss last twelve months related to Bird flu impact on export prices of MSEK 67 (of which MSEK 19 in the third quarter)
• Need to reduce excess volume
• Dialogue ongoing to establish new protocol
Export price development ix vs Q1 2020
10099
97
95
87
85
Q4 2020
Q1 2020
Q3 2020
Q2 2020
78
Q12021
Q22021
Q32021
-15%
Note: price development based on Q3 2021 volume mix
6
Ready-to-cook Denmark – Clear goal to cut losses and return to profitability
• Tough market due to domestic oversupply
- High exposure to weak export markets
• Failed execution of differentiation strategy
- Ramp up slow growing birds not covered by contracts
- Large proportion sold as conventional
- Long contractual lead times to adjust bird intake
• Key features of improvement plan
- Major management changes carried out
- Adjusted slow-growing bird strategy aligned with retail customers
- Increased contractual flexibility agreed with suppliers
- Significant staff reductions
- Reduction of product assortment
-50-35
-60
-145-150
-100
-50
0
50
100
Q1 2021 Q2 2021 Q3 2021 YTD 2021
RTC Denmark EBIT Development, MSEK
7
Continued improvements in production processes
• Unacceptable deviations triggered group wide investigation
- Zero tolerance for not acting on deviations
• Production affected by heat wave in Sweden in July
• Irish operations affected by outbreaks of Covid-19
• Integrated in group wide improvement program
• Structural interventions in Sweden and Ireland
- Intake of birds reduced by 8-10% during rectification process
- Short term negative impact on earnings – long term gain
- Timing of reductions support process to cover cost inflation
• Downsizing of staff, primarily through temporary employments not being renewed
8
Net sales Q3 2021(% change vs YA in parenthesis)
EBIT (Q3)
Q3 2021 – Material earnings deterioration
Ready-to-cook 1) Ready-to-eat 2) Other 3) Total
MSEK Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020 Q3 2021 Q3 2020
Net sales 1,942 1,983 589 532 102 106 2,632 2,621
EBIT 7 105 46 44 -24 -33 30 116
EBIT margin, % 0.4% 5.3% 7.8% 8.2% -10.4% -1.9% 1.6% 5.6%
Non-comparable items 4) 0 0 0 0 -13 -31 -13 -31
Adj. EBIT 4) 7 105 46 44 -11 -2 43 147
Adj. EBIT 4)margin, % 0.4% 5.3% 7.8% 8.2% -10.4% -1.9% 1.6% 5.6%
1) Includes feed in Ireland, hatching in Sweden, 100% consolidation of the 51% owned entity Rokkedahl in Denmark. Net sales for the segment Ready-to-cook includes the external net sales
2) Net sales for the segment Ready-to-eat includes the external net sales. Operative result for the segment includes the integrated result for the group without internal margins
3) Other consist of Ingredients, business and group cost, see note 2 for definition of Other. Group cost was MSEK 15 (37) in the quarter
4) Restated non-comparable items. see note 6 and 8 in the Q3 report
9
Ready-to-cook – Multiple challenges and headwinds
▪ Net sales MSEK 1 942
▪ 1% drop in local currencies
▪ EBIT of MSEK 7 (105)
▪ Uncovered cost inflation
▪ EBIT in RTC Denmark MSEK -60
▪ Production challenges in Sweden and Ireland
▪ Bird flu effects estimated to MSEK -19 (0)
▪ Group-wide improvement programme addressing challenges
1) Restated non-comparable items. see note 6 and 8 I Q3 report
2) Foot score; leading industry indicator for animal welfare
3) Injuries lead to absence at least the next day, per million hours worked
4) Includes recall from customers or consumers, presence of foreign objects in the product, allergen or incorrect content
or sell by dates
MSEK Q3 2021 Q3 2020 R12M 2020
Net sales 1 942 1 983 7 647 7 622
EBIT 7 105 197 326
EBIT margin, % 0.4% 5.3% 2.6% 4.3%
Non-comparable items1) - - -7 -7
Adj. EBIT1) 7 105 204 333
Adj. EBIT1) margin, % 0.4% 5.3% 2.7% 4.4%
Animal welfare indicator2) 7.0 7.3 9.2 10.2
LTI per millions hours worked3) 43.6 39.3 39.1 34.9
Critical complaints4) 0 0 3 9
10
Ready-to-eat – Strong margin
▪ Strong demand in food service and retail
▪ 11% increase in net sales
▪ EBIT of MSEK 46 (44)
▪ 7.8% (8.2%) margin
▪ Strong performance despite cost inflation
1) Restated non-comparable items. see note 6 and 8
2) Injuries lead to absence at least the next day, per million hours worked
3) includes recall from customers or consumers, presence of foreign objects in the product, allergens or incorrect content
or sell by dates
MSEK Q3 2021 Q3 2020 R12M 2020
Net sales 589 532 2 046 1 911
EBIT 46 44 136 95
EBIT margin, % 7.8% 8.2% 6.6% 5.0%
Non-comparable items1) - - 0 0
Adj. EBIT1) 46 44 136 95
Adj. EBIT1) margin, % 7.8% 8.2% 6.6% 5.0%
LTI per millions hours worked2) 20.4 17.0 12.5 11.5
Critical complaints3) 0 4 4 17
11
Ready-to-eat – Strong growth in all sales segments
Sales per country (Q3)(% change vs YA in parenthesis)
Sales per channel (Q3)(% change vs YA in parenthesis)
Retail development, MSEK
Food service development, MSEK
Q4
96
Q3
95105
114123
110
112
109
Q2
101
Q1
105
125+0.9%
+19.3%
-0.8%
+17.6%+1.7%
+12.1%
+7.7%
2019
2020
2021
300319265
317 340368
349380
353
Q3
317
Q4Q2Q1
272
-0.4%
-16.4%
-14.2%
+25.0%-5.0%
+8.8%
-15.1%
2021
2019
2020
CFO comments
13
Q3 2021 P&L –Disappointing earnings per share
• Strong deterioration in EBITDA
• Increased finance costs driven by forex
• Quarterly tax -6 MSEK (-23)
• Net income MSEK 4 (78)
• Earnings per share SEK 0.04 (1.21)
MSEK Q3 2021 Q3 2020 Δ R12M 2020
Net sales 2,632 2,621 0% 10,059 9,940
EBITDA 126 201 -37% 621 699
Depreciation -84 -72 17% -326 -300
Amortization -12 -12 -2% -49 -50
Operating income EBIT 30 116 -74% 248 351
Finance net -20 -15 33% -83 -90
Income after finance net 10 101 -90% 165 260
Income tax expenses -6 -23 -74% -45 -52
Income for the period 4 78 -95% 120 208
Earnings per share, SEK 0.04 1.21 -97% 1.82 3.16
Feed efficiency (kg feed/live
weight) 1.51 1.52 -0% 1.52 1.52
Lost time injuries per million hours
worked (LTI) 40.2 36.6 10% 35.6 30.7
14
• Declining returns vs. same quarter last
year driven by poor results
- ROCE 5.8% (8.8%)
- ROE 6.3% (12.2%)
• Equity ratio 28.8% (28.7%)
Declining returns vs. last year
Capital Employed and ROCE
Equity and ROE
N.b. ROCE and ROE trailing twelve months
15
Continued low level of working capital
MSEK September
30, 2021
September
30, 2020
December
31, 2020
Inventory 805 778 816
Trade and other receivables 928 994 818
Trade and other payables -1,303 -1,320 -1,163
Other working capital, net -472 -461 -407
Working capital -41 -9 64
Working capital/Sales -0.4% -0.1% 0.6%
• Positive contribution from Covid-19 state
aid postponed tax payments (61 MSEK)
• Slight inventory increase vs. previous
quarter driven by increase in COGS
• Target level Working capital/Sales
adjusted for financing 6%
- Q3 2021 adjusted for Covid-19 state aid at
0.2%
- Q3 2021 adjusted for Covid-19 State aid and
financing elements 7.3%563
498 543
211 181
-41
-1.0 %
0.0 %
1.0 %
2.0 %
3.0 %
4.0 %
5.0 %
6.0 %
7.0 %
-100
0
100
200
300
400
500
600
-9-0.1 %
6.2 %
Q2 2021
Q1 2019
0.6 %
5.3 %
Q2 2019
5.6 %
Q2 2020
Q3 2019
2.1 %
Q1 2020
Q4 2019
1.8 %
98
1.0 %
-0.1 %
Q3 2020
Q3 2021
64
Q4 2020
-11-0.1 %
Q1 2021
-11
-0.4 %
Working capital (MSEK)
Working capital / Sales
Working Capital
16
Cash flow – Stable net interest bearing debt
• Reduced EBITDA
• Low capex spend
• Low quarterly tax payment driven by low
result
• Other items include mainly currency effects
and net effects of leasing assets
1) Change in NBID, adjusted for Dividend and Business combinations
MSEK Q3 2021 Q3 2020 R12M 2020
Opening balance NIBD -1,967 -2,058 -1,929 -2,200
EBITDA 126 201 621 699
Change in working capital 31 106 18 143
Net capital expenditure -31 -80 -332 -355
Other operating items -14 13 -52 -10
Operating cash flow 112 240 255 476
Paid finance items, net -16 -19 -67 -76
Paid tax -5 -16 -62 -41
Dividend - - -81 -
Business combinations -23 -104 -35 -104
Other items 7 27 28 12
Change in NIBD 76 129 38 267
Closing balance NIBD -1,891 -1,929 -1,891 -1,933
Capex/Depreciation 49% 160% 139% 166%
Paid financial expenses/NIBD 0.9% 1.0% 3.1% 3.9%
Net cash flow per share1)1.50 3.55 2.35 5.66
Dividend per share 0.00 0.00 1.25 0.00
NIBD/EBITDA 2.8 2.5 2.8 2.6
17
Sustainability results shows positive trend for several KPIs
Time series for selected Sustainability KPI’s
• CO2 emissions pointing in the right direction
- Stable improvement last two quarters
- Ongoing efficiency projects
• Increase in Lost Time Injuries (LTI)
- Unsatisfactory result; focus area with targeted working group
• Continued low use of antibiotics
- Continued positive trend in Ireland
- Marginal use in the Nordic countries
• Stable development in feed conversion
18
• 2021 capital expenditures estimated to MSEK 330 compared to previous guidance of MSEK 400
- Focus on maintenance related to deviations in productions and quality processes
• Paid interest estimate to 3 - 3.5% of average NIBD
• Blended effective tax rate of about ~20%
• Contingent liability - Manor Farm acquisition
- Final settlement to be paid in Q4
- Q4 2021 provision release of MSEK 26
• Dividend
- Dividend SEK 1.25 (0) per share paid in Q2 2021
• The Board has resolved not to propose a second dividend for 2021
• Dividend policy: ~60% of net earning over time
Cash flow guidanceCapital expenditure (MSEK) Capex/Depreciation
Dividend (SEK) Dividend Yield
0.0
0.5
1.0
1.5
2.0
2.5
0
100
200
300
400
500
2016 20202015 2017 2018 2019 2021E
Capex/Depreciation
Capital expenditure (MSEK)
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
0.0
0.5
1.0
1.5
2.0
20182015 2016 2017 2019 2020 2021E
Dividend yield
Dividend
Capital expenditure and Depreciation
Dividend and Yield
19
▪ Scandi Standard is facing multiple challenges
▪ Extensive group wide improvement programme under implementation
▪ Primary focus to obtain required price increases
▪ Turnaround plan under implementation in Denmark
▪ Comprehensive actions to strengthen production and quality processes
▪ Q4 2021 underlying results expected to deteriorate further compared to Q3 2021
▪ Expecting gradual recovery to normalised earnings level during 2022
Summary and outlook
20
Q&A
Appendix
22
Strong drivers for substitution towards chickenClimate impact in line with fish and plant-based
• CO2 impact of chicken ten times lower than red meat
• Similarly low climate impact as fish and plant-based
• Healthy and affordable
• Untapped potential in our domestic markets
Chicken consumption
per person and year
USA 45 kg
UK 37 kg
Ireland 31 kg
Sweden 23 kg
Denmark 23 kg
Finland 22 kg
Norway 18 kg
Source: Open list – an excerpt from the RISE climate database
for food v 1.5
OECD-FAO report
Source: Association of Poultry Processors
and Poultry Trade within the EU, Swedish Board
f h s h ’s
best estimates.
23
Ready-to-cook Sales overview:Weak retail sales offset by food service
Sales per country (Q3)(% change vs LY in parenthesis)
Sales per channel (Q3)(% change vs LY in parenthesis)
Retail Net sales development, (MSEK)
Food service Net sales development, (MSEK)
Q3 Q4
1,5751,5191,515
1,590
1,4751,373
1,4791,582
1,5121,562
1,477
Q1 Q2
+2.8%
+3.7%
+5.2%
-1.8%
+7.2%
-4.2%
+7.8%
2019
2020
2021
Q4
143 152132
Q3
154151
95
132
116
151 139117
Q2Q1
-7.9%
-12.3%
-37.0%
+46.5% -12.8%
+16.9%
-23.4%
2021
2020
2019
24
Ready-to-cook EBIT overview: Material earnings deterioration
▪ EBIT of MSEK 7 (105)
▪ Volume slightly declining
▪ Positive pricing effect partially offset by low price realization on export markets
▪ COGS main driver for decline
▪ Increased cost for direct materials across all markets not yet fully transferred to customer
▪ Ireland plant impacted by Covid-19
▪ Increased inventory provisions in Swe and Den
▪ Continued losses in Denmark including negative impact of supplier settlement of MSEK -17
EBIT Q3 2020 – Q3 2021 (MSEK)
25
Ready-to-eat EBIT overview:Higher volume and cost of goods sold
▪ EBIT of MSEK 46 (44)
▪ Increased volume
▪ Increased cost of goods sold
▪ Benefit from low prices on third party raw material purchase
EBIT Q3 2020 – Q3 2021 (MSEK)
26
Segment information by quarterReady-to-cook, MSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021
Net sales 1 879 1 883 1 900 1 806 7 467 1 899 1 912 1 983 1 824 7 619 1 938 1 943 1 942
Adjusted EBITDA 151 155 165 150 621 138 170 175 139 622 147 142 88
Depreciations -52 -52 -53 -53 -210 -57 -60 -58 -65 -240 -65 -64 -69
Adjusted EBITA 99 103 112 97 411 81 111 117 74 382 82 77 20
Amortizations -12 -11 -13 -13 -49 -13 -13 -12 -11 -49 -13 -12 -12
Adjusted EBIT 87 92 99 84 362 68 98 105 63 333 69 65 7
Non-comparable items 0 -7 0 0 -7 0 0 0 -7 -7 0 0 0
EBIT 87 85 99 84 354 68 98 105 56 326 69 65 7
Adjusted EBITDA margin, % 8,0% 8,2% 8,7% 8,3% 8,3% 7,3% 8,9% 8,8% 7,6% 8,2% 7,6% 7,3% 4,5%
Adjusted EBITA margin, % 5,3% 5,5% 5,9% 5,4% 5,5% 4,2% 5,8% 5,9% 4,0% 5,0% 4,2% 4,0% 1,0%
Adjusted EBIT margin, % 4,6% 4,9% 5,2% 4,7% 4,8% 3,6% 5,1% 5,3% 3,4% 4,4% 3,6% 3,3% 0,4%
EBIT margin, % 4,6% 4,5% 5,2% 4,7% 4,7% 3,6% 5,1% 5,3% 3,0% 4,3% 3,6% 3,3% 0,4%
Ready-to-eat, MSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021
Net sales 489 498 542 514 2 042 476 426 532 476 1 911 444 536 589
Adjusted EBITDA 37 34 42 25 139 26 21 55 39 141 38 47 58
Depreciations -12 -12 -14 -14 -52 -12 -12 -11 -11 -47 -12 -12 -12
Adjusted EBITA 25 22 28 11 87 13 9 44 28 94 26 35 46
Amortizations -1 -1 0 0 -2 0 0 0 1 1 0 0 0
Adjusted EBIT 25 21 28 11 85 13 9 44 29 95 26 35 46
Non-comparable items 0 0 0 0 0 0 0 0 0 0 0 0 0
EBIT 25 21 28 11 85 13 9 44 29 95 26 35 46
Adjusted EBITDA margin, % 7,7% 6,8% 7,8% 4,9% 6,8% 5,4% 5,0% 10,4% 8,2% 7,4% 8,6% 8,7% 9,8%
Adjusted EBITA margin, % 5,2% 4,3% 5,2% 2,2% 4,2% 2,8% 2,2% 8,2% 5,8% 4,9% 5,9% 6,5% 7,8%
Adjusted EBIT margin, % 5,1% 4,2% 5,2% 2,1% 4,2% 2,8% 2,2% 8,2% 6,1% 5,0% 5,9% 6,5% 7,8%
EBIT margin, % 5,1% 4,2% 5,2% 2,1% 4,2% 2,8% 2,2% 8,2% 6,1% 5,0% 5,9% 6,5% 7,8%
27
Other, MSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021
Net sales 91 91 99 100 381 103 110 106 92 411 88 85 102
Adjusted EBITDA 6 7 4 1 18 2 5 5 0 11 -1 0 5
Depreciations -2 -3 -1 -1 -7 -1 -1 -1 -1 -4 0 -1 -1
Adjusted EBITA 4 4 3 0 11 1 4 4 -1 7 -2 -1 5
Amortizations 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjusted EBIT 4 4 3 0 11 1 4 4 -1 7 -2 -1 5
Non-comparable items 0 0 0 0 0 0 0 0 0 0 0 0 0
EBIT 4 4 3 0 11 1 4 4 -1 7 -2 -1 5
Adjusted EBITDA margin, % 6,5% 7,3% 4,3% 0,8% 4,6% 1,8% 4,3% 4,4% -0,5% 2,6% -1,5% -0,1% 5,4%
Adjusted EBITA margin, % 4,3% 4,5% 2,9% 0,1% 2,9% 0,7% 3,3% 3,6% -1,2% 1,7% -2,0% -1,0% 4,5%
Adjusted EBIT margin, % 4,3% 4,5% 2,9% 0,1% 2,9% 0,7% 3,3% 3,6% -1,2% 1,7% -2,0% -1,0% 4,6%
EBIT margin, % 4,3% 4,5% 2,9% 0,1% 2,9% 0,6% 3,3% 3,6% -1,2% 1,7% -2,0% -1,0% -8,4%
Group Cost, MSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021
Net sales - - - - 0 - - - - 0 - - 0
Adjusted EBITDA -5 -8 -5 -7 -24 -6 -4 -3 -5 -18 -3 -17 -12
Depreciations 0 0 0 -1 -2 -1 -2 -2 -3 -8 -3 -3 -3
Adjusted EBITA -5 -9 -5 -8 -26 -7 -6 -6 -7 -26 -6 -20 -15
Amortizations 0 0 0 0 0 0 0 0 0 0 0 0 0
Adjusted EBIT -5 -9 -5 -8 -26 -7 -6 -6 -7 -26 -6 -20 -15
Non-comparable items 0 0 0 0 0 0 0 -31 -21 -52 0 -4 -13
EBIT -5 -9 -5 -8 -26 -7 -6 -37 -28 -78 -6 -24 -28
Adjusted EBITDA margin, % - - - - - - - - - - - - -
Adjusted EBITA margin, % - - - - - - - - - - - - -
Adjusted EBIT margin, % - - - - - - - - - - - - -
EBIT margin, % - - - - - - - - - - - - -
TOTAL, MSEK Q1 2019 Q2 2019 Q3 2019 Q4 2019 2019 Q1 2020 Q2 2020 Q3 2020 Q4 2020 2020 Q1 2021 Q2 2021 Q3 2021
Net sales 2 458 2 472 2 541 2 420 9 891 2 479 2 448 2 621 2 393 9 940 2 469 2 564 2 632
Adjusted EBITDA 190 187 207 169 753 159 192 232 173 756 180 171 139
Depreciations -67 -67 -69 -68 -271 -72 -75 -72 -80 -299 -80 -80 -84
Adjusted EBITA 123 120 138 101 482 87 117 159 93 457 100 92 55
Amortizations -13 -12 -13 -13 -51 -13 -13 -12 -10 -48 -13 -12 -12
Adjusted EBIT 110 108 125 87 431 75 105 147 83 410 88 79 43
Non-comparable items 0 -7 0 0 -7 0 0 -31 -28 -59 0 -4 -13
EBIT 110 101 125 87 424 75 105 116 56 351 88 75 30
Adjusted EBITDA margin, % 7,7% 7,6% 8,2% 7,0% 7,6% 6,4% 7,8% 8,8% 7,2% 7,6% 7,3% 6,7% 5,3%
Adjusted EBITA margin, % 5,0% 4,9% 5,4% 4,2% 4,9% 3,5% 4,8% 6,1% 3,9% 4,6% 4,1% 3,6% 2,1%
Adjusted EBIT margin, % 4,5% 4,4% 4,9% 3,6% 4,4% 3,0% 4,3% 5,6% 3,5% 4,1% 3,5% 3,1% 1,6%
EBIT margin, % 4,5% 4,1% 4,9% 3,6% 4,3% 3,0% 4,3% 4,4% 2,3% 3,5% 3,5% 2,9% 1,1%
28
New definition for treatment of
items affecting comparability with
stricter classification was
implemented during the first
quarter 2021.
For comparison purposes,
historic figures for 2019 and 2020
have been restated.
For 2020, this means that 91
MSEK has been restated, and
Adj EBIT restated from MSEK
500 to MSEK 410.
Overview restatement of non-comparable items
MSEK Q1
2019Q2
2019Q3
2019Q4
2019 2019Q1
2020Q2
2020Q3
2020Q4
2020 2020
Bird flu1) -15 -15Earn-out Debt adjustment 2) -31 -21 -52
Covid-19 pandemic3) -27 -17 -16 -60Strategy project4) -16 -16Restructuring5) -6 -5 -12Restructuring of production6) -7 -7 -7 -7
Transaction costs7) -1 -1Costs for incorrect inserts goods8) -6 -6Other -4 -4Total - -13 - -16 -30 -42 -17 -31 -59 -150
MSEK Q1
2019Q2
2019Q3
2019Q4
2019 2019Q1
2020Q2
2020Q3
2020Q4
2020 2020Bird flu1)
Earn-out Debt adjustment 2) -31 -21 -52
Covid-19 pandemic3)
Strategy project4)
Restructuring5)
Restructuring of production6) -7 -7 -7 -7Transaction costs7)
Costs for incorrect inserts goods8)
OtherTotal - -7 - - -7 - - -31 -28 -59
Non-comparable items in the operating income (EBIT) 2019-2020 Restated
Non-comparable items in the operating income (EBIT) 2019-2020
29
This presentation contains various forward-looking statements that reflect ’s current views with respect tofuture events and financial and operational performance. The words “b ” “ x ” “ ” “ ” “ ” “ ”“ s ” “sh ” “ ” “ ” “ ” “ h ” or, in each case, their negative, or similar expressions identify certain ofthese forward-looking statements. Others can be identified from the context in which the statements are made. Theseforward-looking statements involve known and unknown risks, uncertainties and other factors, which are in some casesbeyond the C ’s control and may cause actual results or performance to differ materially from those expressed orimplied from such forward-looking statements. These risks include but are not limited to the C ’s ability to operateprofitably, maintain its competitive position, to promote and improve its reputation and the awareness of the brands in itsportfolio, to successfully operate its growth strategy and the impact of changes in pricing policies, political and regulatorydevelopments in the markets in which the Company operates, and other risks.
The information and opinions contained in this document are provided as at the date of this presentation and are subject tochange without notice.
No representation or warranty (expressed or implied) is made as to, and no reliance should be placed on, the fairness,accuracy or completeness of the information contained herein. Accordingly, none of the Company, or any of its principalshareholders or subsidiary undertakings or any of such s ’s officers or employees accepts any liability whatsoeverarising directly or indirectly from the use of this document.
Forward looking statements